Suppose XYZ Corp.is producing and selling disposable wooden chopsticks in a perfectly competitive market.The market price is $0.04 per unit and the firm is selling 1 million units per month.Now suppose the firm increases its stated price to $0.05 per unit.According to the theory of perfect competition,the result will be
A) total revenue for this firm will increase,but by less than $10 000 per month.
B) total revenue will increase from $40 000 to $50 000 per month.
C) total revenue will decrease from $50 000 to $40 000 per month.
D) total revenue for this firm will fall dramatically,perhaps to zero.
E) no change in the firm's total revenue.
Correct Answer:
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